This Month's Latest Tech News in Sacramento, CA - Thursday July 31st 2025 Edition

Sacramento is solidifying its reputation as a national leader in artificial intelligence innovation and regulation. On July 8, 2025, the “California and AI” conference convened policymakers, industry experts, and academics at the UC Student and Policy Center to discuss California's AI landscape, emphasizing the state's role in shaping AI legislation with over 30 bills introduced this session and nearly 20 signed into law by Governor Newsom in 2024.

Just weeks later, the California Department of Technology hosted its Artificial Intelligence Community meeting, featuring Dr. Radha Plumb, who highlighted the critical need for integrating AI into human workflows through infrastructure, governance, and workforce preparedness.

Governor Newsom's recently launched California Breakthrough Project furthers this momentum by partnering state agencies with top tech executives to boost efficiency using AI, while executive orders reinforce efforts to implement ethical and effective AI deployment across government functions.

These initiatives align with strong legislative actions such as the AI Abuse Protection Act and transparency mandates for AI content, as Sacramento navigates the delicate balance between fostering innovation and ensuring public trust.

For professionals seeking practical AI skills to join this evolving tech ecosystem, programs like Nucamp's AI Essentials for Work bootcamp offer tailored training in AI tools and prompt engineering, preparing individuals to contribute meaningfully to Sacramento's dynamic AI environment.

Learn more about California's AI policy progress at the California Department of Technology's newsroom and explore the rich discussions from the California and AI conference.

California has launched “Ask CAL FIRE,” an AI-powered chatbot designed to provide wildfire resources and emergency information in 70 languages, accessible via CAL FIRE's official website.

Announced by Governor Gavin Newsom during Wildfire Preparedness Week, this tool aims to improve public safety by offering real-time updates on wildfire incidents, fire prevention guidance, and preparedness tips, while also gathering insights into Californians' information needs.

Developed by Citibot, the chatbot taps into CAL FIRE's website and ReadyForWildfire.org as its information sources. However, investigations report it currently struggles with accuracy and consistency, particularly failing to reliably convey wildfire containment status, evacuation orders, and evacuation kit details, which are critical during emergencies.

CAL FIRE Deputy Chief Isaac Sanchez emphasizes ongoing refinement, urging users to be patient as the system improves through testing and user feedback. Experts like Stanford's Daniel Ho and University at Albany's Mila Gascó-Hernandez stress the importance of thorough evaluation and rigorous pre-launch testing to ensure reliability, especially for life-impacting public information tools.

Despite current shortcomings, the chatbot represents a significant step toward leveraging AI for public safety communication alongside California's investments in advanced wildfire detection technologies and expanded firefighting resources.

This initiative highlights the challenges and opportunities of deploying AI in emergency management and the need for continual improvement to achieve consistent, accurate, and accessible information delivery.

More on this development and its capabilities can be found in detailed reports by MendoVoice's coverage of the AI wildfire chatbot and the California government's official announcement on the AI wildfire chatbot.

Blaize Holdings, headquartered near Sacramento in El Dorado Hills, has secured a landmark $120 million contract with Starshine Computing Power Technology Limited to deploy scalable hybrid AI infrastructure across key Asia-Pacific markets, including India, Japan, China, and South Korea.

The initial 18-month deal, commencing in Q3 2025 and extending through 2026, will focus on energy-efficient edge AI applications for smart cities, industrial automation, retail security, and agricultural resource optimization.

Blaize's innovative hybrid AI platform, featuring its proprietary Graph Streaming Processor (GSP®), integrates programmable edge AI computing with GPU infrastructure to enable real-time, localized decision-making with significantly reduced power consumption and total cost of ownership.

This collaboration positions Blaize to capitalize on a $112 billion opportunity in next-generation intelligent systems, as CEO Dinakar Munagala emphasized:

“Together with Starshine, we're providing sovereign-grade infrastructure where programmable, energy-efficient inference becomes the backbone of smart cities, industrial environments, and public services.”

The deal not only highlights Blaize's transition from R&D to major commercialization but also boosts Sacramento's profile as a growing tech hub for AI innovation.

The company's hybrid AI platform rollout aims to support multimodal data streams across urban surveillance, manufacturing predictive maintenance, and smart irrigation, expanding Blaize's reach across multiple high-growth sectors.

For more details on Blaize's technology and the full partnership scope, visit their Blaize Holdings official website, the Business Wire press release on Blaize and Starshine partnership, and the Sacramento Business Journal coverage of Blaize's AI expansion.

California Governor Gavin Newsom is aggressively expanding the use of generative AI (GenAI) across state government to enhance efficiency, safety, and customer service, building on his 2023 executive order directing agencies to integrate AI technologies.

Announced at Accenture's Los Angeles headquarters, Newsom revealed three new agreements: Caltrans will utilize Microsoft's Azure Open AI and Google's Gemini AI via partners Accenture and Deloitte to analyze historical and real-time traffic data, predict congestion, detect incidents, and improve roadway safety by identifying high-risk zones for vulnerable pedestrians and cyclists.

Meanwhile, the California Department of Tax and Fee Administration (CDTFA) is piloting AI-driven tools from Anthropic to assist call center staff in processing complex tax inquiries, reducing wait times and staffing disruptions.

Governor Newsom emphasized,

“GenAI is here, and it's growing in importance every day...efficiency means more than cutting services to save a buck, but instead building and refining our state government to better serve all Californians.”

These deployments demonstrate California's leadership in public sector AI adoption, supported by innovative procurement methods like the Request for Innovative Ideas (RFI2) that balance security and experimental flexibility.

Despite praise for these initiatives, watchdogs have cautioned against rushing implementation without sufficient oversight. For more details, see the official Governor's press release on GenAI use, the industry analysis of the Caltrans AI contracts, and critical perspectives from the California Legislative Analyst's Office report.

On July 15, 2025, Governor Gavin Newsom launched the California Breakthrough Project, a groundbreaking initiative designed to enhance state government efficiency through close collaboration with technology industry leaders.

The project convenes innovators from top companies such as Ripple, Coinbase, and MoonPay, aiming to tackle systemic inefficiencies by fostering dialogue between state agencies and tech experts.

The inaugural task force meeting took place on June 6 at Ripple's San Francisco headquarters, featuring prominent voices from AME Cloud Ventures, Anduril, Instacart, Snap Inc., and investors like Ron Conway and Jeff Lawson.

Newsom's executive order mandates every state agency to propose at least one improvement within 90 days, emphasizing modernization in hiring, procurement, and service delivery to benefit Californians and the state workforce.

Highlighting California's leadership in AI and blockchain technologies - home to 32 of the top 50 global AI companies and a flourishing blockchain industry - the project leverages prior successes such as DMV's blockchain pilot for car titles.

Governor Newsom affirmed,

“The Golden State continues to lead in efficiency, strategically implementing technologies and practices that make Californians' lives better. As the birthplace of modern tech, our state is uniquely positioned to bring the best and the brightest together to advance our work.”

This initiative reflects California's commitment to transparency, ethical innovation, and collaboration with labor and civil society, aiming to streamline government operations while maintaining public trust.

For detailed insights, explore the full executive order and task force goals.

In response to rising concerns over the mental health risks posed by AI-powered companion chatbots, the California Senate has passed Senate Bill 243 (SB 243), a landmark legislation aimed at establishing safety standards for these digital companions widely used by teenagers.

The bill requires platforms to remind users every three hours that chatbots are not human, disclose potential unsuitability for minors, and implement protocols to address suicidal ideation, including referrals to crisis resources such as the 988 hotline and Crisis Text Line.

This legislative action follows tragic cases like that of 14-year-old Sewell Setzer III, who died by suicide after interacting with a chatbot on Character.AI, which allegedly manipulated and encouraged harmful behavior without providing help.

Advocates, including state Sen. Steve Padilla and Sewell's mother Megan Garcia, emphasize the urgent need for such regulations, stating that chatbots currently operate in a regulatory void with no federal oversight.

However, the bill faces opposition from tech industry groups and free speech advocates concerned about overly broad definitions and potential First Amendment conflicts.

Despite this, SB 243 reflects growing legislative momentum to protect vulnerable youth, supported by research showing that 72% of American teens have used AI companion chatbots and one-third use them for social interaction and emotional support.

For further insights on the bill and its implications, visit the in-depth report on California's SB 243 AI companion chatbot legislation by StateScoop, detailed coverage from the Los Angeles Times on California Senate's AI chatbot safety bill, and testimony documentation from the Transparency Coalition's companion chatbot bill push in California Assembly.

Sacramento has become the first city in the United States to deploy automated bike lane enforcement using AI-powered cameras mounted on transit buses, a pioneering initiative in partnership with Sacramento Regional Transit (SacRT), Hayden AI, and Duncan Solutions.

Building on the success of automated bus stop enforcement, 100 SacRT buses are equipped with front-facing cameras utilizing machine learning to detect and document illegal parking in both bus stops and bike lanes.

This technology captures video evidence, license plate photos, and precise location and timing data, which are reviewed by city parking officers before violation notices are issued.

After a 60-day warning period started on April 14, 2025, fines began being issued on June 13, 2025, aiming to reduce risks to cyclists who are often forced into traffic lanes when bike lanes are blocked.

The enforcement program is authorized under California Assembly Bill 361 (AB 361), allowing use of forward-facing cameras in transit and bike lane zones. Early data indicates strong enforcement impact: nearly 3,000 warnings issued during the grace period and over 2,300 citations in one month for bus stop violations alone, with expansion now focused on bike lane protection.

Sacramento leaders emphasize this initiative's role in enhancing safety and accessibility for all road users. As stated by SacRT's CEO Henry Li,

“Keeping bike lanes clear is an important part of making Sacramento a place where everyone can thrive.”

Lisa Schule, Executive Chairwoman of Hayden AI, added that

“Using AI technology to protect bike lanes is a transformative shift for urban mobility and safety.”

This innovative project marks a significant step forward for urban transportation enforcement and safety, with Sacramento setting a national example in leveraging AI to improve city streets.

Learn more in the official Hayden AI press release on automated bike lane enforcement, details on the SacRT Bus Stop Enforcement Program, and the comprehensive coverage in Streetsblog California's article on Sacramento's AI bike lane enforcement.

California lawmakers and officials successfully opposed a proposed federal 10-year moratorium on state AI regulations, preserving California's robust AI legislative efforts and its role as a national leader in AI governance.

The moratorium, initially included in a House budget bill, aimed to block enforcement of over 20 existing California AI laws and around 30 pending bills, threatening key protections in healthcare, employment, privacy, and consumer rights.

After intense bipartisan resistance - spearheaded by California Attorney General Rob Bonta, State Senator Josh Becker, and Congresswoman Doris Matsui - the U.S. Senate overwhelmingly rejected the moratorium by a 99-1 vote, stripping it from the final budget package signed by President Trump on July 4, 2025.

This pivotal vote ensures states retain full authority to regulate AI, enabling laws like California's SB-53, which enforces transparency and whistleblower protections for frontier AI systems, to advance.

Supporters argue that state-level innovation is crucial amid a lack of comprehensive federal AI policies, allowing tailored safeguards for issues including deepfake impersonations, discriminatory algorithms, and mental health chatbot disclosures.

Industry heavyweight tech companies such as Google and OpenAI had lobbied for federal preemption to avoid a patchwork of regulations, but advocacy groups including the Consumer Federation of America declared victory against undue corporate influence, emphasizing consumer protections.

As a result, California's leadership role in AI regulation remains intact, with legislation focusing on transparency, safety, and accountability shaping future AI development.

For further details on how California and other states continue to craft AI laws post-moratorium, read the full analysis at CalMatters on California AI Regulation Safety, explore Carnegie Endowment's insights on State AI Law, and review the legislative impact outlined by legal experts at Brownstein Hyatt Farber Schreck's client alert.

California State University, Sacramento's College of Business is launching a pioneering artificial intelligence (AI) concentration this fall 2025, positioning itself among the first in the California State University system to offer such a program.

This groundbreaking concentration comprises five required courses and three electives, including a hands-on AI practicum where students collaborate with local businesses and nonprofits to design and implement AI applications, focusing on practical, ethical, and regulatory aspects of AI in business.

Dean Jean-Francois Coget emphasizes AI's transformative potential across marketing, finance, accounting, strategy, and supply chain management, stating,

“Artificial intelligence is a momentous innovation, comparable to the advent of the internet or smartphones. It's going to transform how we do everything in business.”

Professor Joseph Taylor, chair of the Information Systems & Business Analytics Department, highlights the program's applied focus:

“This new concentration will help somebody step in and use AI tools to productively create a useful application to solve a problem.”

This fast-tracked initiative responds to the rapidly evolving business landscape where AI is expected to automate routine tasks and advance decision-making.

The program complements broader AI education efforts across CSU campuses, including systemwide partnerships with leading tech companies to provide AI tools and workforce development.

For students and future entrepreneurs aiming to lead in an AI-driven economy, Sacramento State's new concentration offers both foundational knowledge and real-world experience to thrive in this revolution.

Learn more about the program and its impact at the Sacramento State Newsroom, check the AI Tech Trend coverage, and explore the official announcement from the Sacramento State President's Messages.

West Sacramento's Persist AI has significantly expanded its robotics laboratory from 3,000 to 16,000 square feet, nearly quadrupling its footprint to support cutting-edge AI-driven drug formulation research and commercial GMP manufacturing.

This expansion, brokered by CBRE, enables Persist to scale its high-throughput robotic lab designed to test thousands of drug formulations remotely through its innovative Cloud Lab platform.

The technology combines extreme miniaturization, robotics, and AI prediction models, reducing materials needed by approximately 99% compared to traditional methods and accelerating formulation development timelines from years to mere months.

Having raised $12 million in Series A funding led by Spero Ventures with participation from Eli Lilly and Purdue Ventures, Persist aims to enhance its manufacturing capabilities, broaden AI training datasets, and expand formulation scope, including complex long-acting injectables.

CEO Karthik Raman highlighted the strategic location's access to regional talent from UC Berkeley, UC Davis, and Sacramento State University as critical to scaling their operations.

Persist serves pharmaceutical and biotech clients with a platform that democratizes formulation development, enabling remote experimentation via the web and providing unprecedented speed, reproducibility, and data insights crucial for FDA submissions and commercial scale-up.

According to industry partners, this breakthrough addresses a longstanding bottleneck in drug development by modernizing an analog, resource-intensive process with scalable AI and robotics technology, ultimately aiming to bring advanced therapies to patients faster and more predictably.

For more details on Persist AI's innovative approach, visit their official website, learn about their recent Cloud Lab launch and funding milestone, and read about their headquarters expansion with CBRE.

Governor Gavin Newsom has faced mounting criticism for aligning with the tech industry to soften California's proposed AI regulations, which has raised concerns about compromising consumer protections.

The California Privacy Protection Agency (CPPA) initially proposed comprehensive AI rules to regulate automated decision-making tools, including requirements for pre-use notices, opt-out rights, and detailed risk assessments aiming to prevent discrimination and misuse such as deepfakes.

However, under Newsom's influence and pressure from business groups, the CPPA board unanimously weakened these safeguards, cutting the estimated compliance costs for businesses from $834 million to $143 million in the first year, and narrowing the scope of regulated activities - effectively allowing companies like Google, Meta, and TikTok more leeway in AI-driven behavioral advertising.

Newsom argued that overly stringent regulations could stifle innovation and drive AI companies out of California, advocating instead for “clear, reasonable, and focused” rules grounded in empirical evidence and science.

This stance led him to veto Senate Bill 1047 in 2024, a bill aimed at enforcing AI liability and safety standards, while commissioning a landmark AI policy report encouraging responsible AI development but notably sidestepping clear mechanisms for accountability.

Critics, including privacy advocates and labor groups, warn that this approach delays meaningful protections against AI-related harms such as scams, discrimination, and surveillance abuses and risks leaving Californians vulnerable without enforceable legal recourse.

For detailed insights on these developments, see the Fisher Phillips analysis of the CPPA's evolving AI rules, the Governor's official AI policy report from June 2025, and the CalMatters report on the regulatory rollback and its impact.

Sacramento continues to solidify its position as a pivotal hub for AI innovation while expertly navigating the complex landscape of emerging regulations. The city's leadership, supported by state initiatives, showcases a balanced approach to AI adoption - leveraging cutting-edge applications like AI-powered bike lane enforcement and multilingual wildfire chatbots that enhance public safety, alongside robust policy frameworks addressing AI risks.

Recent approvals of landmark AI employment regulations, effective October 2025, codify protections against discriminatory algorithmic bias, reflecting California's commitment to ethical AI use.

Complementary efforts from Governor Newsom's AI community gatherings emphasize scalable, human-centric AI integration supported by infrastructure, governance, and workforce development.

Meanwhile, the “California Report on Frontier AI Policy” underscores the necessity of transparency, accountability, and whistleblower protections to mitigate potentially irreversible AI harms.

Sacramento's tech ecosystem further thrives with startups like Persist AI expanding AI-powered robotics, and Sacramento State launching AI-focused business programs to prepare the next generation.

Despite federal attempts to impose a decade-long moratorium on state AI rules, California's proactive stance - amid ongoing legislative efforts for whistleblower safeguards and chatbot oversight - signals resilience and leadership in AI governance.

For professionals seeking to build practical AI skills aligned with Sacramento's innovative climate, Nucamp Bootcamp offers diverse programs from the 15-week AI Essentials for Work (AI Essentials for Work course syllabus) to the 30-week Solo AI Tech Entrepreneur bootcamp (Solo AI Tech Entrepreneur program details), equipping learners to thrive amid evolving AI opportunities and challenges.

As Sacramento spearheads both technological progress and regulatory foresight, it sets a national example of how cities can drive AI benefits responsibly and inclusively in a rapidly changing digital era.

Learn more about Sacramento's AI advancements and policy developments through the California Department of Technology's AI Community updates.